New downtown construction and redevelopment will
continue
in 2004 at the steady pace it has experienced for the past five
years.
With the 2003 renovations of the Krippendorf Building and Power
Building,
the only large vacant building remaining downtown is the old McAlpin's
Department Store, which closed in 1996 after 144 years on Fourth
St.

McAlpin's in the 1920's

On June 5, 2004, its renovations were approved by Cincinnati City
Council and work should start within the year.

The McAlpin's Department Store occupied the series of 1850's commercial
buildings seen here for over 100 years
until its 1996 closure (The three floor building farthest to the right
was not part of the department store).
Currently condominiums are planned for these buildings.
[January 2004 Jake Mecklenborg]

Saturday,
June
5, 2004

Condos planned
for old McAlpin's

Retail
plan
flopped; Council must OK new approach

By Ken
Alltucker
The Cincinnati Enquirer

After three
years of failing to recruit new shops and businesses to
downtown's vacant McAlpin's building, developers are dangling a new
idea in front of City Council: condos.

Madison
Marquette and JFP Properties are seeking the city's approval to again
change plans to renovate the long-empty former department store and the
abutting Newstedt-Loring-Andrews building on the south side of West
Fourth Street, between Race and Vine Streets.

The latest
plan
would deliver 60 condos and street-level shops instead of an office
building mixed with two floors of retail.

Cincinnati's
Planning Commission Friday approved the revised deal. The city will get
$4 million for the two buildings, which it owns. City Council's Finance
Committee is expected to debate the proposal Monday, which could yield
a full council vote later next week.

Councilman
Jim Tarbell said condos are a better fit for Fourth Street, and the new
project gives the city its best shot of reviving the almost block-long
stretch of blight across from Tower Place.

"This has
been
really frustrating for us," said Tarbell, also a planning commission
member.

The
city spent $8.5 million to buy the two buildings and a third building
formerly occupied by Frisch's at the southeast corner of Fourth and
Race streets. In 2001, the city struck a deal with Madison Marquette to
build 80,000 square feet of retail on the block and another 65,000
square feet of shop space on the first two floors of the three
buildings.

But
with lukewarm demand for office and retail space downtown, Madison
Marquette turned to residential developer JFP Properties, now building
condos a block away at the former Fourth National Bank building. The
firms formed a joint venture, 4 J Redevelopment LLC.

If
council approves the revised deal next week, the developer will
immediately buy the two buildings and complete the project within two
years, according to Chad Munitz, the city's development director.

The
city will keep the former Frisch's building, but Madison Marquette
still has development rights and will pursue a retail and office
project there.

Joseph
Straka, of JFP Properties, said the McAlpin's condo project would
include 70 parking spaces below the McAlpin's building and along
Fourth. He said he could not gauge interest among potential buyers
because the firm is awaiting council's approval before launching an
aggressive sales strategy.

Phase 1 of the Queen
City Square Tower is under construction at the corner of 3rd &
Broadway. This phase will total eleven floors, with six parking
decks. A 30 floor office tower is planned as the second phase of
this development, where the orange parking garage now stands.

Building
bonds approved Downtown tower going
up at 3rd and Broadway By Ken AlltuckerThe Cincinnati
EnquirerThe Port of Greater
Cincinnati Development Authority Thursday approved
$45 million in bonds to build downtown's first new office tower in more
than a decade. Port-issued bonds will
cover the bulk of development costs for Eagle
Realty Group's $62.5 million Queen City Square project. Eight office
floors and a 688-space parking garage are planned at the northwest
corner of Third Street and Broadway. No tenants have been
named for the 16-story tower, which is to open in 12 to 15 months. "We have talked to a
couple of tenants who have expressed interest," said Tom Stapleton,
Eagle's vice president of development. Eagle's parent, Western
& Southern Financial Group, is one of
downtown's largest employers, but Stapleton said the company hasn't
announced plans to move to the Queen City Square building. Downtown's office
market has tried to shrug off a three-year slump of
lukewarm demand. Downtown's average vacancy rate of 12.3 percent is
still lower than in most suburban locales, but demand is also lower.
Also, Convergys Corp. plans to relocate its downtown employees at its
Atrium One office tower on Fourth Street, potentially leaving Convergys
tower at Sixth and Vine streets with significant vacancy. The garage will be paid
by $10 million in port-issued bonds that will
be purchased by Western & Southern.The bonds will be repaid by
future property taxes generated by the project. Cincinnati City Council
approved the deal Wednesday along with a $533,000 grant for sidewalk
and exterior improvements. Another $35 million in
"lease" bonds will build the office tower. Eagle
transferred ownership of the building and land to the port authority,
so Eagle can lease the building. E-mail kalltucker@enquirer.com

Another view of Queen City Square Phase I construction.
[April 2004 Jake Mecklenborg]

A stitched panorama of Phase I
contruction, November 6, 2004.
[Jake Mecklenborg]

In March the City
of
Cincinnati broke ground on a large new parking garage and
condominiums to occupy
the entire block bordered by Central Parkway, Vine, 12th St., and
Jackson
St. This block was razed decades ago and has since served as a
parking
lot for Kroger's downtown office. This project will provide roughly
1,000
parking spots, include fifty new condominiums along Vine St., street
level
retail, and an art gallery at the corner of 12th & Jackson.
New Kroger Garage & Condos.
[April 2004 Jake Mecklenborg]
>

12th & Vine, looking south. The Kroger headquarters (1959)
is visible on the right side of the photo.
[Jake Mecklenborg April 2004]

Other News:

-Expansion of the
Cincinnati
Convention Center will begin in June as soon as WCPO vacates its
studio
at Central Ave. between 5th & 6th.

-New WCPO
studio recently completed on Gilbert Ave. on the site of the old
Natural History
Museum

View of the new Contemporary Art Center, looking west on Walnut St.
[April 2004 Jake Mecklenborg]

Another view of the new CAC, looking north up Walnut St.
[December 2003 Jake Mecklenborg]

Here is a view of 6th & Walnut from the Carew Tower, prior to
construction
of the new CAC.
[Summer 2000 Jake Mecklenborg]

View of new Cincinnati Reds Museum and Main St. extension.
[January 2004 Jake Mecklenborg]

This four floor apartment building at the corner of 6th & Race
was constructed during 2003.
The parking lot visible at the center of this photo was to be the site
of a new McAlpin's,
then Dillard's, then Maisson-Blanche, then Nordstrom's, but all of the
deals fell through.
[December 2003 Jake Mecklenborg]

5th & Race Timeline...

Saturday, November 25,
2000

Timeline:
The wooing of Nordstrom to downtown

•
December 1996: Mayor Roxanne Qualls confirms that Cincinnati is
attempting to lure Nordstrom and Tiffany Co. to shore up downtown
retail.

• April
1998:
Indianapolis developer Herman Renfro completes a six-month study on
putting Nordstrom on Fourth Street and a family entertainment district
on riverfront. Other developers, residents, and City Council members
question if it's worth jamming the riverfront with theaters, shops and
restaurants to lure Nordstrom. Mr. Renfro insists Nordstrom won't come
downtown without a vibrant riverfront.

• March 1999: Demolition
of 14-story Fifth & Race tower and surrounding structure to clear
the way for Nordstrom or another retailer. In addition to tower,
demolition includes the Convention Way walkway between Race and thw
Regal Hotel, former Neisner Building and the Parkade Garage at Sixth
and Race streets.

• September
1999:
City officials announce plans to lure 14-screen movie theater to the
vacant McAlpin's department store on Fourth Street. Earlier, the city
hoped Nordstrom would take that spot to return Fourth Street to its
former retail glory. City begins shopping Fifth and Race site to
Nordstrom.

• May 2000:
Letter of intent to put Nordstrom store downtown outlines a $48.7
million package: $26 million from the city to build the store, parking
garage and skywalks; $12.7 million from Cincinnati Equity Fund; $5
million in tax-increment financing; $5 million loan from the state.

• June
2000:
City Council approves financing plan for downtown Nordstrom, promising
that no more than $35.9 million of taxpayer money will be spent to
build store, a garage and skywalks.

• September
2000: Seattle-based
Nordstrom announces that chairman and chief executive John Whitacre
quit; Blake Nordstrom and Bruce Nordstrom, two family members, will
take his place.

Cincinnati officials found new hope Tuesday for a plan to put a third
downtown department store at Fifth and Race streets, a day after the
announced sale of Mercantile Stores Co. Inc. dealt a crushing blow to
those plans.

Economic Development Director Andi Udris rushed out of City Council's
Community Development Committee Tuesday afternoon to meet briefly with
representatives of Dillard's Inc. and turn over information about the
city's plans for Fifth and Race streets. City officials had been
working with top Mercantile executives to put an upscale Maison Blanche
department store at the site. But Mercantile had not signed a binding
agreement for the site before Dillard's announced Monday that it would
buy Mercantile.

"We're not giving
up hope on the
project," Mr. Udris told council members. "We feel the project makes
sense."

That Dillard's
wanted information
about the project gave some council members hope.

"They must be vaguely interested; otherwise, this is all courtesy
stuff," Community Development Chairwoman Bobbie Sterne said. Mr. Udris
acknowledged that Dillard's, a chain of 272 stores, typically locates
its stores in suburbs rather than downtown areas. But he said he hopes
the Arkansas-based chain will consider what makes sense here.

When asked before Tuesday's meeting to explain whether the city had a
revised plan, Mr. Udris replied, "We are formulating one now."

Councilman Todd Portune urged Mr. Udris not to wait for Dillard's
before trying to lure other potential tenants to the site. Mr. Portune
suggested that Seattle-based Nordstrom, which the city has been wooing
for months, might be a good fit for Fifth and Race.

Mr. Udris assured Mr. Portune that city officials were trying to
contact Nordstrom to discuss the possibility. But Nordstrom executives
have indicated that they don't want to open a downtown store unless
there are three anchors, he said.

The collapse of the $62 million Maison Blanche deal leaves the city
with two retail anchors -- Lazarus at Fountain Place and Saks Fifth
Avenue across Fifth Street from where the Maison Blanche would have
been located.

Mr. Udris said the Dillard's representatives wanted to study the city's
plans before having a more detailed discussion next week.

Under the Maison Blanche plan, the city was to buy the Fifth and Race
property from Western-Southern Life Insurance Co., then lease it back
to the company.

Western-Southern
owns the Fifth
and Race property but doesn't know what will become of it.

"We have not had an opportunity to talk with Dillard's yet. We're
trying to arrange a meeting with them, and basically, we cannot make a
decision until we've had that opportunity," Herb Brown, a
Western-Southern spokesman, said.

The uncertainty leaves an important retail hole for the city to fill.
But Councilman Dwight Tillery said he's confident a store at Fifth and
Race streets will go forward.

"I think if we are
patient, we'll
have the right store to locate in that prime spot," he said.

The city has spent $32,000 so far to help tenants move from the Fifth
and Race block, but it expects to spend as much as $250,000 in
relocation expenses for up to 20 former tenants. The city offered a
maximum of $20,000 to each tenant for moving expenses.

Some former tenants
chuckled when
asked about the latest developments at Fifth and Race.

While city officials argue that Western-Southern -- not the city --
evicted the businesses from the block, former tenants don't see it that
way.

Many said the city
collaborated
with Western-Southern to evict tenants without a binding lease
agreement with Mercantile.

Helen Thomas, co-owner of Skywalk Baseball Cards, spent $7,000 to move
the shop in July 1996 -- before the city began offering reimbursements
-- from the Fifth and Race Arcade to Vine Street. Ms. Thomas said she
moved because she "saw the writing on the wall" and found an
immediately available space on Vine.

"Maybe this will teach the city a lesson to make sure they have all
their ducks in a row before they start making decisions that affect so
many people," Ms. Thomas said.

###

Thursday,
November 23, 2000

Nordstrom won't
build downtown after all ------------------------------------------------------------------------Retailer
pulls out of $49M deal with city

By
Lisa Biank Fasig and Robert AnglenThe
Cincinnati Enquirer

Nordstrom Inc. has pulled out of downtown Cincinnati.

The
Seattle-based retailer on Wednesday told city officials it would put
off for at least a year any discussions to build a department store
downtown, dumbfounding council members and ending a seven-year
courtship to build the desirable but elusive merchant there.

Mayor
Charlie Luken was more direct.

“The
deal is dead,” he said before Wednesday's City Council meeting.
“Nordstrom's has pulled out.”

AT A GLANCE

• The decision:
Nordstrom, citing concerns about its current operations, decides to
delay building a downtown Cincinnati store for at least a year. • The reaction:
Surprise by city officials, who differ on what to do next. • The Deerfield Twp.
store: Plans to build in Warren County unaffected by decision.
Nordstrom's board of directors on Tuesday decided to suspend
indefinitely talks on locations in downtown Cincinnati and downtown
Pittsburgh.

“This
is not something we knew was coming,” City Manager John Shirey told a
stunned City Council on Wednesday, adding that he expects there will be
a “tendency to somehow blame the city for this.”

But
the retailer, which has been struggling against declining profits and
weak sales, said it wants to focus on improving its existing stores
after recently appointing a new chief executive and top management.

A
second area Nordstrom, proposed for Deerfield Township, is apparently
not affected by Tuesday's decision.

“(CEO)
Blake Nordstrom and his management team have been reviewing our company
strategy, including real estate, and felt that downtown Cincinnati and
downtown Pittsburgh were two projects that didn't make sense,” said
Paula Weigand, Nordstrom spokeswoman. “It's not a reflection on the
project. It's really a reflection on our business needs.”

Council members, who in June approved a $48.7 million incentive package
to lure the coveted retailer to Fifth and Race streets — which is now
marked by an open pit and a chain-link fence — immediately started
talking about alternatives for the site.

“This
is not good news any way you look at it,” Mr. Shirey said. “I don't
want to mislead people into thinking this can be worked out in a few
months. This puts off the development of the site for at least a year.”

Nordstrom told site developer Eagle Realty Group that it may be
interested in revisiting the downtown site in a year — though a year
could be a minimum.

“I
don't think I can count on that,” Mr. Shirey said.

No stores
interested In the
meantime, Eagle will decide whether to pursue development of the site
with another retailer, develop the project as non-retail or wait for
Nordstrom.

“We
need to look obviously at all the alternatives,” said Tom Stapleton,
senior vice president of investment management at Eagle, the real
estate arm of Western Southern Life Insurance Co. “We do not want to
let the site sit there vacant for a long time.”

Mr.
Stapleton, who has dedicated 30 to 50 percent of his work weeks to the
Nordstrom project for the past four years, said the merchant was the
only department store to express interest in the site. Eagle had spoken
to non-department-store retailers before Nordstrom committed, and will
begin the process of visiting them again.

But
council members said they have been frustrated with Eagle's failure to
land Nordstrom.

Mr.
Luken said he wants to use Nordstrom's withdrawal to “default” the
contract the city has with Eagle to develop the city-owned site. He
said the site is still one of the most attractive retail locations in
the city and wants to open it to all developers.

Parking lot
proposed Mr.
Shirey — to the approval of most council members — suggested filling in
the Fifth and Race site and leveling it off for parking. That plan is
reminiscent of the delayed Fountain Place project, which sat as a
parking lot for years after being cleared for development.

Wednesday's announcement also left shoppers disheartened.

“I'm
disappointed,” said Denise Harpring of Anderson Township. “I think it
would have been a very good draw for downtown.”

Nordstrom officials have said for years they wanted to open a store in
Cincinnati, one of the top 50 markets in the country.

Cincinnati officials have been wooing Nordstrom since 1993. In May, the
retailer promised a store downtown at Fifth and Race and in Deerfield
Township at a proposed mall on Mason-Montgomery Road. Both stores were
scheduled to open in 2003.

The
downtown deal hinged on the store developer's ability to reach an
agreement with the city on a $48.7 million incentive package, about
half of which would come from the city and state.

Monday, city officials said an additional $360,000 would be needed to
build a parking garage that was promised along with the $48.7 million
financial package.

City will save
money While
Nordstrom's decision will save the city money, a majority of the
incentive package would have come from bonds, state loans and a private
pool of money from businesses. The city has spent $10 million buying
property and clearing the site.

Mr.
Shirey said the city will save “a couple of million dollars.”

Nordstrom said Wednesday the decision to put off the deal had nothing
to do with the incentive package offered by Cincinnati.

Instead, Ms. Weigand said, the support by the community has been
encouraging.

Dan
Theno, Deerfield Township's administrator of development and community
relation, was surprised by downtown's bad news, but said it puts
Deerfield at an advantage.

“It
would strengthen our position considerably” before the Warren County
Regional Planning Commission, he said. The board voted last Thursday
against rezoning the Deerfield site, although the board's vote was only
a recommendation.

“That
would put more emphasis on the development of the Nordstrom-anchored
mall in Deerfield,” he said.